In today’s episode of Equity, we’re covering some crucial news that might’ve slipped under the radar during the U.S. holiday weekend, starting with the recent security breach at OpenAI. Although the accessed data doesn’t seem highly sensitive, the breach itself is concerning. TechCrunch’s Devin Coldewey points out that AI companies, treasure troves of data, will become increasingly attractive targets for hackers. This incident is a stark reminder for companies partnering with major AI firms to remain vigilant.
Fisker’s Slide into Bankruptcy
We also had an update on Fisker’s slide into bankruptcy. The EV startup asked its bankruptcy judge for permission to sell its remaining inventory for $14,000 a vehicle, a noticeable drop from the $70,000 Fisker was initially asking for. Some people fear that this Chapter 11 bankruptcy could turn into a Chapter 7.
Venture Funds and Pro Rata Rights
To close out, we looked at a new trend of venture funds helping seed investors exercise their pro rata rights and avoid diluting their equity stakes(OpenAI). While it could be suitable for smaller funds to have a way to maintain their equity stakes, pro rata rights discussions can get contentious, and bringing more capital to the table won’t necessarily help that.
Upcoming Episode
Equity will return on Wednesday with an exciting conversation between Mary Ann and angel investor and Floodgate co-founder Mike Maples Jr. We’ll talk to you then! The latest trend among seed VCs and uncover the scariest part of OpenAI’s data breach, highlighting potential risks and impacts.
About Equity
Equity is a top-class flagship podcast produced by Theresa Loconsolo. It posts every Monday, Wednesday, and Friday. Subscribe to us on Apple Podcasts, Overcast, Spotify, and all the casts.
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